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"American Express" featured Andrew Flamm, director of the Small Business Development Center (SBDC) at Pace University, in "These Tips Can Help You Stretch Your Working Capital"

12/17/2018

"American Express" featured Andrew Flamm, director of the Small Business Development Center (SBDC) at Pace University, in "These Tips Can Help You Stretch Your Working Capital"

Keep your working capital working harder by following these tips to help boost your cash flow.

Running a business requires a juggling act: Expenses must be paid even as you are waiting for checks to come in. That fluctuating pot of money at a business's disposal to pay for day-to-day expenses is called working capital.

“Working capital is basically the flow of cash that supports your operations," says Christine Rico, founder of CEO on Speed Dial, a financial consulting firm in Brooklyn, New York. “It's the lifeblood of a company."

These days, business owners may be feeling a working capital squeeze—just as they need it most to take advantage of a strong economy and the upcoming holiday season. “This time of year is so crucial," says Andrew Flamm, director of the Small Business Development Center (SBDC) at Pace University in New York. “If you don't have working capital in place to be able to ramp up and have goods on the shelf, you lose an opportunity."

Why the squeeze? Interest rates are inching up, making lines of credit and working capital loans more expensive. In addition, many businesses are on the receiving end of a push among large corporations to optimize their own cash flow by pushing out payment terms.

Read the full article.